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Workday Plans to Expand and Enhance Its Customer Base

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Workday lists Aon and FedEx as its largest clients to date

In this series, we discussed Workday’s (WDAY) double-digit revenue growth, operating segment performance, and investment in geographic expansion. Europe (VGK) topped the list in fiscal 3Q16.

In its fiscal 3Q16 earnings release, Aneel Bhusri, Workday’s co-founder, stated that the company won Aon’s (AON) contract for Workday’s FM (financial management) software. Aon is Workday’s largest FM client to date. FedEx (FDX) also signed a contract for the company’s HCM (human capital management) software. FedEx is the company’s biggest client in HCM to date. Aon will be a partner. It’s expected to invest in Workday.

St. Luke’s Health Systems, Unum Group (UNM), and Netflix (NFLX) are some of Workday’s other main customers.

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Workday is a leader in SaaS HR management systems

In 4Q14, Forrester Research ranked Workday as a leader in the SaaS (software-as-a-service) HR Management Systems. PwC expects that investments in SaaS solutions will rise more than two times to $78 billion in 2016. On the other hand, investments in traditional ERP systems will fall ~30% to more than $15 billion. During 2014–2018, Gartner expects SaaS ERP (enterprise resource planning) to grow 14% per year—compared to 21% growth per year for SaaS CRM.

Geographic expansion and acquisition of enterprise customers

Considering all of the points we discussed so far in the series regarding the company, it appears that acquiring new enterprise customers, improving its geographical presence, and expanding its community of channel partners are the cornerstones of Workday’s strategy.

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